Premium brands deterred by shortage of appropriate retail space – DTZ

Poland has been attracting premium and luxury brands thanks to its steady GDP growth and increasing customers’ purchasing power. However, many brands are often deterred from entering the Polish market by the scarcity of suitable commercial space in Warsaw’s and Kraków’s high streets, according to the “Retail Therapy” report prepared by real estate consultancy DTZ. “The influx of high-end brands is restricted by a shortage of appropriate retail space. Iconic designer names prefer high street locations for their flagship stores, but even in Warsaw and Kraków the availability of such quality units is limited,” the report reads. As a result of the scarcity of adequate space in high streets, premium and luxury brands such as Louis Vuitton, YSL, Bottega Veneta, and Gucci opted for the Vitkac shopping mall. Numerous other tenants have also chosen shopping malls, such as Warsaw Klif, Atrium Promenada, Galeria Mokotów in Warsaw, Galeria Krakowska in Kraków, Stary Browar in Poznań and Klif in Gdynia. “Another factor which constraints expansion is the lower number of tourists in the Poland’s biggest cities compared with, for instance, Prague, Vienna or Berlin,” said Renata Kusznierska, senior director, head of Retail – CEE at DTZ.